benefits of mapping your supply chain - qima
TRANSCRIPT
Benefits of Mapping Your Supply Chain
February 24, 2021 l Presenter: Emi Vrioni
3,800 staff
35+ offices and labs
85 countries covered
14,000 corporate customers spanning all Consumer Goods & Food
A global footprint to help with all your quality and compliance programs, everywhere
Supply chain mapping is the process of engaging with direct suppliers to discover indirect suppliers, resulting in an understanding of the end-to-end supply chain for a material, a product, or a brand.
YOUR COMPANY DIRECT SUPPLIERS
(Tier 1)
INDIRECT SUPPLIERS(Tier 2,3,4)
What does “Mapping your supply chain” mean?
Source: QIMA Surveys 2018-2019, EcoVadis, BCI, FT
An average business knowsless than
of their suppliers
Only
6% to 10%of businesses say they have full supply chain visibility
of executiveshave no knowledge of the items in
their supply chain beyond tier-1
Less than
of businessesuse technology to map their supply
chain beyond tier-1
50%
25%25%60%
Visibility & Transparency
Data security
COVID-19 pandemic
Trade wars and policy(US-China tensions, Brexit)
Climate change, weather events, natural disasters
Rising costs
Raw material and component shortages
Consumer demands
Building a Resilient Supply Chain
With new technology, journalists can easily take pictures at your supplier’s factory.
Brand image and sales will immediately suffer
This quickly can result in your Company ending up in the news
Protect Your Brand and Your Customer’s Brand
Gatherdata
Pre-screening Communicate SAQ SEP
RiskAssessment Audit
Steps to Mapping Your Supply Chain
Gather your supplier’s data including addresses of the factories or other sites of employment.
Start with direct suppliers Tier 1, then go through the chain Tier 2, Tier 3 and so on.
Gather Data
Pre-screen your suppliers based on their inherent risk, based on the country, product and site of employment function.
Create a list with the potential high-risk suppliers.
Pre-Screening of the Supplier
Communicate with your internal team on why you are doing this project and how it will be organized through webinars, emails, etc.
Don’t forget to reach out to your suppliers. It is important to keep them informed as well and make sure they understand your mission and goals.
Reach Out and Communicate
Create a self-assessment questionnaire (SAQ) and send to those suppliers which you deem to be high-risk
Self-Assessment Questionnaire (SAQ)
Start a SEP in order to ensure that you gain responses from all suppliers.
You will typically find that there will be suppliers that are not responsive whether you reach out through emails or phone calls.
Ask buyers or other employees that you are in direct contact with the suppliers to help you.
The SEP can be done in-house or through an outside company like QIMAwho will help you to engage your suppliers.
Supplier Engagement Program (SEP)
Along with the inherent risk already established, use responses from the SAQ to categorize your list of potential high-risk suppliers into:
• High Risk
• Medium Risk
• Low Risk
Perform Further Analysis
Begin auditing the high-risk suppliers first, then medium-risk and finally your last priority will be the low-risk suppliers
The risk level will also drive the frequency of the audits
Some audits will result in findings with a respective corrective action plan (CAP)
Track to ensure that your suppliers are actioning on the CAP and close all non-compliances found during the audit
Establish Audit Management Program
Collaborate for continuous improvement
Establish an improvement program for each factory based onaudit findings, with timelines and fixed KPIs
We work with your factory to fix non-compliances listed in the corrective action plan
Advisory services on audit failure root cause analysis and process improvement
Custom onsite training, e-learning and workshops to onboard your supply network and increase supplier collaboration
Use QIMA audit and inspection data to build targeted factory improvement programs that bring results
Go beyond audits by working with suppliers to improve and upskill for long-term partnerships
Types of Audits
QIMA’s ethical audit programs are based on international standards, our own best-in-class protocols and client-specific requirements.
Ethical audit focus:
Hygiene, health and safety
Child labor/human rights
Labor practices and conditions
Waste management/Environment
Audit methodologies performed by QIMA:
QIMA Ethical audit – based on SA8000
SMETA (Sedex) – Based on ETI code+ILO
BSCI – Amfori – Based on ILO + national regulations
Initiative for Compliance and Sustainability (ICS)
Higg Facility Social & Labor Module (FSLM)
Tailored programs to ensure the compliance of your suppliers to your specific requirements
Start mapping Convenience
Schedule audits whenever you need from your computer or the QIMA appE-learning academy
QIMA platform
Traceability: GPS tracking enables you to pinpoint factory locations
Gather the data on a platform
Pre-screening of the suppliers
Risk assessment
GPS coordinates
QIMA Dashboard: Insights and KPIs in a single placeManage your audit program through the platform
Technology
BOOST EFFICIENCY
ACHIEVE TRANSPARENCY
DRIVE CONTINUOUS IMPROVEMENT
OPTIMIZE RESOURCES
Using Technology to Map Your Supply Chain
